Is the Byrider license to access and use the Licensed System divisible?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to all the terms and conditions of this Agreement and the Franchise Agreement, Licensor hereby grants to Licensee, and Licensee hereby accepts, a nonexclusive, indivisible, non-transferable license to access and use the Licensed System in a manner consistent with the terms of this Agreement.
Such license is provided for the sole purpose of allowing Licensee access to the functions of the Licensed System necessary to obtain the Services for the sole use of Licensee's automobile sales business pursuant to and in accordance with the Franchise Agreement.
It is the responsibility of the Licensee alone to ensure that the Licensed System fulfills the individual requirements and goals of the Licensee.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the license granted to franchisees to access and use the Licensed System is explicitly nonexclusive, indivisible, and non-transferable. This means that the franchisee cannot divide the license into smaller parts to be used by multiple parties, nor can they transfer the license to another entity.
This license is specifically for the purpose of allowing the franchisee to access the functions of the Licensed System necessary to obtain services for their automobile sales business, as outlined in the Franchise Agreement. The franchisee is solely responsible for ensuring that the Licensed System meets their individual requirements and goals.
The agreement emphasizes that the license extends only to the franchisee's internal automobile sales business purposes and not for any direct or indirect benefit of third parties. The franchisee must access the Licensed System using equipment and procedures similar to those designated in Appendix A and use it solely for business initiated at the location specified in Appendix C, with additional locations requiring Byrider's approval. This ensures that the Licensed System is used as intended and that Byrider maintains control over its usage and security.